By: Derick M. Stitik SVP and Property Practice Group Leader
As new capacity enters the market on a daily basis, the days of stripped down excess and surplus coverage have gone by the wayside along with 5% wind deductibles. Very reminiscent of the workers’ compensation dividend plan craze of the early 2000s, as property carrier competition grows differentiating coverage forms emerge and are enhanced.
It’s important to note that most enhancement endorsements are sub-limits offered inside the total policy limit, not in addition to. Many carriers today will oer equipment breakdown coverage, enhanced ordinance and law limits, or even calendar year deductibles on their policy form. Those are game changers on a broad form spectrum. The enhancements I’m addressing today are extension limits that can make a big difference in an everyday loss scenario. Here are a few non-standard examples:
|Pollutant Clean-up and Removal||up to 25k|
|Lost Key Coverage||up to 10k|
|Property of Others||up to 10k|
|Personal Effects||up to 10k|
|Property Off-Premise or In-Transit||up to 25k|
|Fire Extinguisher Recharge||$5000|
|Utilities Services Coverage||up to 100k|
|Reward Reimbursement||up to 5k|
|Sewer/Water Backup||25k and higher|
|Accounts Receivable/Valuable Papers||up to 100k|
|Electronic Data||up to 100k|
The list goes on and although some are becoming commonplace among competitors, the limits vary dramatically. Most carriers have several editions of enhancement forms that can be oered based on underwriting criteria and individual risk analysis. Wholesale broker interaction is key to requesting and securing the best possible placement for your individual insured. The “cookie-cutter” approach of blindly requesting an enhanced form could leave your client’s individual higher limits sitting on the sidelines. We have catalogued the latest forms and work with our underwriters on every risk to enhance coverage form when applicable. Contact your Socius property and casualty broker today to discuss your client needs. Enjoy the rest of your summer and happy selling!